Gensol Engineering shares hit upper circuit as company returns to black in Q3

Shares of Gensol Engineering Ltd hit their upper circuit limit during the trading session on Tuesday after the company reported a strong set of numbers for the quarter ended on December 31, 2023. The company shared its earnings with the bourses on Monday through an exchange filing.

Gensol Engineering returned to black in the December 2023 quarter as the company reported a net profit of Rs 12.31 crore, said the filing. However, the company had reported a net loss of Rs 1.90 crore for the quarter ended on December 31, 2022. Net profit margin came in at 5.4 per cent.

Its revenue from operations surged 335 per cent on a year-on-year (YoY) basis to Rs 227.12 crore in the three months ended on December 31, 2023, compared to Rs 52.22 crore in the same period a year ago. EBITDA for the period came in more than Rs 70 crore, up 312 per cent YoY, while Ebitda margins dropped 142 basis points to 30.8 per cent.

Following the announcement of results, shares of Gensol Engineering hit an upper circuit of 5 per cent to Rs 898.05 on Monday, commanding a total market capitalization close to Rs 3,400 crore. The scrip had settled at Rs 855.30 in the previous trading session on Saturday.

For the nine months ended on December 31, 2023, it reported 111 per cent in the net profit of Rs 34 crore, with a total revenue rising 147 per cent YoY Rs 584 crore. The company reported a 238 per cent jump in the Ebitda at Rs 169 crore, with margins expanding to 28.9 per cent for the given period.

During the period, the company secured its first Green Hydrogen project by winning the NHPC's Kargil Green Hydrogen Mobility Station EPC Project as the lowest bidder. It was awarded a Rs 138.72 crore Solar Power Project from SEML for the second time and secured a prestigious Rs 301.5 crore Solar EPC contract from MAHAGENCO at district Akola in Maharashtra.

Gensol Engineering offers engineering, procurement, and construction (EPC) services for the development of solar power plants. Gensol has successfully installed solar power plants with combined operations, and has also established a cutting-edge electric vehicle (EV) manufacturing facility in Pune, India.

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